Thursday's Market Recap - The Bear Market Decline Continues, With No End In Sight.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are modestly lower early in the premarket. Dow futures down 68 points, Nasdaq down 29 points, and the S&P fell 9.5 points. Fall out from the Fed rate hike yesterday, stock markets in bear territory, along with US and global economic slowdown, is weighing heavy on the minds of investors.
On The Bond Desk:
The US 10 Year Bond Yield at 2.78%, down 0.04%
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at 46.68/barrel, down 3.09%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were all lower. Japan (Nikkei 225) down 2.84%, Shanghai down 0.52%, Hong Kong (Hang Seng) lost 0.96%
Major European markets fell in their session. German (DAX) down 1.44%, France CAC 40 down 1.78%, London FTSE 100 0.80%
Market And Sector Dynamics
Stock opened today's session mixed. The Dow fell 79.05 points, Nasdaq up 1.36 point, and the S&P lost 8.50 points, as investors continue to digest the Fed rate hike from yesterday.
Markets traded lower for the entire session on worries about declining global growth, trade war with China, corporate earnings for 2019, and a looming US government shut down tomorrow.
Markets hit the low of the day in the middle of the afternoon session, saw the Dow down more than 670 points, before clawing back some of those losses, shortly before the close of trading.
All the major indices, the Dow, Nasdaq, and the S&P are now fully in bear market territory, down more than 20% from their recent highs. Today's selloff was broad based and deep. Ten of the eleven S&P sectors closed the session with losses, led by Energy, Consumer Discretionary, Technology, Industrials, Consumer Staples, Communication Services, Healthcare, Materials.
Factors Influencing Today's Market
The Fed's quarter point rate hike, and interest rate stance continues to be a problem for markets.
The looming possibility of a government shutdown in Washington.
Crude oil prices continued to decline in today's session. WTI crude oil close at $45.88/barrel, down 2.80%.
This week's Initial Jobless Claims report showed an increase of 8,000 claims to 214,000 total, and remains low by historical standards.
Both Asian and European markets closed lower in their sessions.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, all the indices were dived well into bear market territory. The Dow sank 464.06 points, Nasdaq down 108.42 points, and the S&P lost 39.54 points. Total NYSE volume traded, a moderately heavy 5.53 billion shares. Declining shares outpaced Advancing shares by 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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